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The way I see it the Â£ is hugely overvalued at the moment, the GDP figures are way off target and Darling's estimate of Â£175bn of debt this year is going to be way out. Unemployment still soaring etc etc etc

Surely the markets are going to wake up to this soon, leading to a run on the Â£ and desperate IR hikes?????

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The way I see it the Â£ is hugely overvalued at the moment, the GDP figures are way off target and Darling's estimate of Â£175bn of debt this year is going to be way out. Unemployment still soaring etc etc etc

Surely the markets are going to wake up to this soon, leading to a run on the Â£ and desperate IR hikes?????

October

YAWN

Where have you been for the last 10 months? This topic has been done to death.

Hugely overvalued?

Your mistake: you cannot look at the UK situation in isolation when making forecasts on FX rates.

US/Eurozone/japan are in big trouble as well.

Cn't be bothered to go over it again for the 1,000 th time - just have a look at this thread from today

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The way I see it the Â£ is hugely overvalued at the moment, the GDP figures are way off target and Darling's estimate of Â£175bn of debt this year is going to be way out. Unemployment still soaring etc etc etc

Surely the markets are going to wake up to this soon, leading to a run on the Â£ and desperate IR hikes?????

October

I reckon interest rates should already be higher to protect the pound. It's already lost a lot of ground in the last year or so to almost every ccy there is.....unfortunately though I think you are probably right that there is further to go. I think when the dust has settled from the global recession europe has a strong enough base to the economies to recover quickly (particularly Germany and France) - all the UK has is a badly damaged Fin Services industry and a mountain of publis debt!

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no top 7 Manufacturing Nations in the world in Billions, for a small nation we manufacture 1/3rd of what China does! Germany is ahead of us (but they are fkd), Italy is on a parr but they are courrupt. The rest of Europe is well behind. The cost of living and wages in Europe is now sky high.

Like prev poster says we are also energy neutral, we use the same amount of energy in Â£s as we dig up/pipe out but we export lots and import lots. (in the past we used less than we dug up/piped up)

Edited July 31, 2009 by moosetea

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no top 7 Manufacturing Nations in the world in Billions, for a small nation we manufacture 1/3rd of what China does! Germany is ahead of us (but they are fkd), Italy is on a parr but they are courrupt. The rest of Europe is well behind. The cost of living and wages in Europe is now sky high.

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IMHO the pound is vastly undervalued against the Euro/Dollar... We are still one of the worlds leading manufacturers...

It sounds strange but despite the zanu labours best efforts to destroy us we are somehow still a leading maufacturer nation. We would be even stronger with good government.

Look at pharmaceuticals, security/arms, engineering we're still good. Of course it may not last, but compared to our european neighbours we're in a good posotion. Of course thats pure luck and its the reason why sterling will do OK.

At least we know our bankers are fraudsters as the americans do. But there are big chunks of europe who think their banks are sound...f***wits!!

I think if we can get more competitive and undo some of the damage to our education system we are in position to do very well.